Established in 1968, CARFAC was the first organization in the world to fight for and establish exhibition fees to be paid to visual artists by publicly funded galleries.

CARFAC published its first fee schedule in 1968 and made it freely available to Canadian artists and galleries and to the public.  Previous to that, most galleries in Canada did not pay exhibition fees to the artists they exhibited.  CARFAC began issuing Minimum Fee Schedules which recommended how much artists should be paid when their art is exhibited, reproduced, or otherwise used. 

This initial fee schedule has been updated through negotiation and usage, and it reflects increases in the cost of living.  The Exhibition Fees are voted on annually by CARFAC members, and any changes to these fees are generally published in January of the year following the vote.  All other copyright fees are revised approximately every two years.  All fees are considered recommended minimum payments for the various uses of artistic works under the Copyright Act and the professional services of visual and media artists.  Canada's success in the establishment of these fees influenced international artists' associations to create similar initiatives. 

The first fee schedule was met with mixed reactions, including acceptance and hostility. Immediately, some galleries supported artists' rights and began paying fees but most refused to abide by the CARFAC fee schedule.  Still others did not agree with the payment of fees in recognition of the use of an artist's copyrighted material. Although some galleries came to understand and respect payment for uses of artists' works, some museums commonly ask an artist to sign a waiver that they are willing to exhibit their work for free, or to sign away all their copyrights upon the purchase of a work.  While artists are free to make that choice, this practice is used as a form of intimidation in the process of negotiation, and it negates the author's rights in the use and ownership of their work.

In 1975, through further lobbying efforts, the payment of CARFAC Exhibition Fees was made a requirement for publicly funded galleries applying to the Canada Council of the Arts to receive funding under the Program Assistance to Art Museums and Public Galleries program. This federally funded program provided key financial support to galleries, and including the mandatory payment of CARFAC Fees as an eligibility criteria provided an essential incentive for publicly funded galleries to pay artist fees.  Since then, most provincial and municipal arts councils and other funding institutions have implemented similar eligibility criteria.  It is important to note that exhibition fees were referred to as artist fees, or more commonly CARFAC fees, because the level of payment was established by artists, or more accurately, by CARFAC, as the association representing artists' professional interests.

After much lobbying by CARFAC, payment of the Exhibition Right for the public exhibition of artistic production became part of the Canadian Copyright Act (C-42). The exhibition fee is payment for the use of work created after June 7, 1988 in an exhibition in a public space where the gallery receives public funds. The exhibition fee only applies when the artwork shown is not being actively presented for sale or hire.  The Exhibition Right legally permits the artists the right to authorize the use of their works in public exhibitions and to allow them to require compensation for the use of their works. 

CARCC, established in 1990 by CARFAC, is a copyright collective that licenses and administers copyright for visual and media artists in Canada.  In Québec, SODRAC (Société du droit de reproduction des auteurs, compositeurs et éditeurs au Canada), a copyright agency dedicated to songwriters and composers, also has a department for visual arts copyright management. The collectives can grant permission to exhibit, reproduce or otherwise use their affiliate's works and negotiate the conditions for those uses.  The collectives formally adopt a fee schedule and negotiate in the name of the copyright holders they represent.  They charge applicable fees for the licenses they issue, collect the royalties and pay their affiliates.  A percentage of the amount due to artists is retained as a commission for their administrative and negotiation work.

Moral Rights protect the reputation of the creator/author and remain with the creator/author even if copyright is assigned to another party. Moral rights can only be transferred or assigned upon the death of the creator/author. The Right of Integrity is a category of Moral Rights which protects the integrity of the work and any alteration (i.e. cropping, overprinting), distortion, mutilation or modification requires the permission of the artist.  Any change made to a painting, sculpture, or engraving has been deemed by the courts to be detrimental to the reputation of the artist because they are unique, one-of-a-kind works. If a work is accidentally damaged, it must be repaired prior to any further exhibition, reproduction or other use.

The Exhibition Right was introduced into the Copyright Act in 1988 (art. 3 (1) g), and applies to artists' works that were created after June 8, 1988.  For the author of an artistic work, it includes the sole right to present the Work (other than a map, chart, or plan) at a public exhibition, for a purpose other than for sale or hire. The exhibition right entitles creators or their duly authorized agent to require payment when their work is exhibited in a "public exhibition" other than for sale or hire. For example: work being displayed in an art rental program or work that is being shown in a commercial gallery with the primary intention of selling it would not entitle the artist to require the payment of exhibition fees. The Exhibition Right is maintained by the author unless signed permission is given, and as any form of copyright, does not automatically transfer to another party when the work is sold or loaned to another party.  An Exhibition Fee, also known as Artist Fees, is the fee paid to an artist for use of a Work in a public Exhibition.

The Reproduction Right, as per article 3 (1) of the Copyright Act, is the sole right to reproduce the Work, or any substantial part thereof, in any material form, including digital and electronic reproductions, by means now or hereafter known. When an artist produces a work of art, the reproduction of the work can only be authorized by this author or his/her duly authorized agent. Conversely, an artist may not substantially copy another copyright owner's work without permission. In either case the permission should be obtained in writing.

The Public Communication Right, as per article 3 (1) of the Copyright Act, is the sole right to communicate the Work or any substantial part thereof to the public, notably by means of telecommunication.  When an artist produces a work of art, the public communication of the reproduction this work can only be authorized by this author or his/her duly authorized agent. Conversely, an artist may not substantially copy another copyright owner's work without permission.  In either case, the permission should be obtained in writing.

Professional Services Fees are not associated with copyright use; rather they are recommended compensation for work done in association with an artistic project such as an exhibition. They may include, but are not limited to the following:

"Presentation" includes speaking or teaching about an artist's own work or any area of expertise associated with the work or one's life as an artist, leading workshops or tours, speaking to school groups, and so on.

"Consultation" means the giving of advice, input or opinions that might be associated with project development, exhibitions, or commissions concerning the artist's own production, or participation in a consultative process concerned with, for example, policy development in the cultural arena, or participation in a jury or other selection process.

"Installation" means overseeing or participation in the installation or de-installation of works for an exhibition on the exhibitor's premises.  Activities associated with installation may include unpacking or packing of works, placing works in an exhibition space, ordering, hanging, adjustment of equipment, and so on.

"Preparation" is the work associated with producing an exhibition that is done outside the exhibitor's premises.  Preparation might include correspondence, telephone calls, preparing plans or reproductions, writing statements, proof-reading, overseeing packing and shipping arrangements, and so on.

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